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IN THE STRONGEST TERMS TO H.M.G., I THINK IT WILL BE CLEAR TO HON MEMBERS THAT DEFENCE WILL BE ANOTHER ITEM FOR WHICH SUBSTANTIALLY INCREASED EXPENDITURE NEXT YEAR WILL BE UNAVOIDABLE''.
4. PROCEDURE DURING MR RODGERS' VISIT:
THE FORMAL POSITION IS THAT A DECISION TO ENTER INTO A DEFENCE COSTS AGREEMENT WITH H.M.G. MUST BE TAKEN BY THE GOVERNOR-IN- COUNCIL, BUT PRIOR CONSULTATION WITH THE FINANCE COMMITTEE OF THE LEGISLATIVE COUNCIL IS ESSENTIAL TO ENSURE THAT THE NECESSARY MONEY WILL BE VOTED IF THE EXECUTIVE COUNCIL ADVISES THAT AN AGREEMENT SHOULD BE ACCEPTED.
5. I WILL DISCUSS MODALITIES WITH THE SENIOR MEMBER AFTER HIS RETURN, BUT I THINK THE FIRST STEP SHOULD BE FOR MR RODGERS TO MEET A JOINT SESSION OF EXECUTIVE COUNCIL AND FINANCE COMMITTEE AT WHICH HE COULD EXPLAIN H.M.G.'S POSITION. MEMBERS MAY WELL WISH TO QUESTION MR RODGERS ON WHAT HE HAS SAID, AND I HOPE HE WILL BE PREPARED TO ACCEPT THIS.
6. WE COULD ARRANGE THIS MEETING FOR 11.30 ON TUESDAY 28 OCTOBER, 1.E. IMMEDIATELY AFTER THE WEEKLY EXECUTIVE COUNCIL SESSION.
7. AFTER THIS MEETING MEMBERS WILL WISH TO DISCUSS AMONGST THEMSELVES, AND WILL CERTAINLY WISH TO CONSULT ME, AND ALSO TO HAVE ANOTHER GO AT MR RODGERS. MR RODGERS AND I WILL HAVE TO WORK OUT TOGETHER HOW BEST TO HANDLE WHATEVER EMERGES, AND ONE CANNOT LAY DOWN SPECIFIC PROCEDURES IN. ADVANCE. PREFERABLY THIS JOINT MEETING SHOULD BE THE ONLY ONE, AND THEREAFTER PROCEEDINGS SHOULD BE IN AS SMALL A FORUM AS POSSIBLE. BUT I CANNOT FORESEE WHETHER IT WILL PROVE MOST HELPFUL TO PROCEED BY MEANS OF DISCUSSIONS BETWEEN MEMBERS AND MYSELF AND SUBSEQUENTLY BETWEEN MR RODGERS AND MYSELF, OR BY DIRECT DISCUSSIONS BETWEEN A SMALL GROUP OF MEMBERS AND MR RODGERS AND MYSELF, OR BY A MIXTURE OF BOTH.
8. HOPEFULLY THIS PROCESS WILL LEAD TO A SITUATION IN WHICH EXECUTIVE COUNCIL IS PREPARED TO ADVISE THE GOVERNOR TO ACCEPT DEFINED TERMS IN THE KNOWLEDGE THAT FINANCE COMMITTEE WOULD BE
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/PREPARED